BBY (Best Buy Co) 5-Year Yield-on-Cost %: 7.38 (As of Jul. 23, 2026) — 55% Above Median

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Director of Data and Quant Analytics at GuruFocus
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Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

BBY Best Buy Co Inc BBY
75 GF Score
Price $87.11
GF Value $75.99
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Best Buy Co 5-Year Yield-on-Cost %?

Best Buy Co BBY +2.22% 75 5-Year Yield-on-Cost % is 7.38 as of Jul. 23, 2026, which is 55% above its 10-year median of 4.77. GuruFocus rates BBY with a GF Score™ of 75/100 and a GF Value™ of $75.99 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 579 Retail - Cyclical companies, Best Buy Co ranks better than 79.97% on this metric.

Best Buy Co's yield on cost for the quarter that ended in Apr. 2026 was 7.38.


The historical rank and industry rank for Best Buy Co's 5-Year Yield-on-Cost % or its related term are showing as below:

BBY' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.81   Med: 4.77   Max: 11.41
Current: 7.38


During the past 13 years, Best Buy Co's highest Yield on Cost was 11.41. The lowest was 2.81. And the median was 4.77.


BBY's 5-Year Yield-on-Cost % is ranked better than
79.97% of 579 companies
in the Retail - Cyclical industry
Industry Median: 3.27 vs BBY: 7.38

Best Buy Co  (NYSE:BBY) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


Best Buy Co 5-Year Yield-on-Cost % Related Terms


BBY vs TSCO, ULTA, DKS: 5-Year Yield-on-Cost % Comparison

For the Specialty Retail subindustry, Best Buy Co's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Best Buy Co 5-Year Yield-on-Cost % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Best Buy Co's 5-Year Yield-on-Cost % falls into.


BBY
75GF Score
Best Buy Co Inc BBY
5-Year Yield-on-Cost % is just one metric. See GF Score™, valuation, warning signs, and more.
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Best Buy Co 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of Best Buy Co is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5
Frequently Asked Questions Learn more about 5-Year Yield-on-Cost % →
What does a 5-Year Yield-on-Cost % of 7.38 mean?
Best Buy Co (BBY) has a 5-Year Yield-on-Cost % of 7.38 as of Jul. 23, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Best Buy Co and its competitors. This is 55% above median its historical median of 4.77. Over the past decade, Best Buy Co's 5-Year Yield-on-Cost % has ranged from 2.81 to 11.41. According to the industry distribution chart, Best Buy Co ranks #116 out of 579 companies in the Retail - Cyclical industry, placing it in the top 20%.
Is Best Buy Co's 5-Year Yield-on-Cost % too high?
Best Buy Co's current 5-Year Yield-on-Cost % of 7.38 is 55% above median its 10-year median of 4.77. Over the past 10 years, this metric has ranged from a low of 2.81 to a high of 11.41. The Retail - Cyclical industry median 5-Year Yield-on-Cost % is 3.27. Best Buy Co's value of 7.38 is 125.7% above this industry median. Based on the distribution chart, Best Buy Co ranks #116 out of 579 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Best Buy Co has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Best Buy Co's 5-Year Yield-on-Cost % compare to TSCO and ULTA?
According to the Retail - Cyclical industry distribution chart, Best Buy Co ranks #116 out of 579 companies for 5-Year Yield-on-Cost %. This places Best Buy Co in the top 20% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 3.27. Best Buy Co's value of 7.38 is 125.7% above this benchmark. Historically, Best Buy Co's own 5-Year Yield-on-Cost % has ranged from 2.81 to 11.41 over the past decade. While the company's 10-year median is 4.77 vs. the industry median of 3.27, Best Buy Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Retail - Cyclical company?
The median 5-Year Yield-on-Cost % among Retail - Cyclical companies is 3.27, based on 579 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Best Buy Co's current 5-Year Yield-on-Cost % of 7.38 is 125.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Best Buy Co and its competitors. For the Retail - Cyclical industry, the median 5-Year Yield-on-Cost % is 3.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Best Buy Co's current 5-Year Yield-on-Cost % is 7.38, which is 55% above median its own 10-year median of 4.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Best Buy Co stock overvalued right now?
Based on GuruFocus' analysis, Best Buy Co (BBY) is currently considered Modestly Overvalued. The stock's GF Value™ is $75.99, compared to a current price of $87.11 — trading 14.6% above its estimated fair value. The current 5-Year Yield-on-Cost % is 7.38, which is 55% above median its 10-year median of 4.77 and 125.7% above the Retail - Cyclical industry median of 3.27. Best Buy Co's overall GF Score™ is 75/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Best Buy Co (BBY), the current 5-Year Yield-on-Cost % is 7.38 as of Jul. 23, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Best Buy Co (BBY) Overvalued in 2026?

Based on GuruFocus' analysis, Best Buy Co stock appears to be overvalued. The current stock price of $87.11 is trading 14.6% above its estimated GF Value™ of $75.99. GuruFocus considers Best Buy Co to be Modestly Overvalued.

Key valuation signals for BBY:

  • 5-Year Yield-on-Cost %: 7.38 (55% above median its 10-year median of 4.77)
  • GF Value™: $75.99 vs. price of $87.11 (14.6% above fair value)
  • GF Score™: 75/100 with 7 warning signs
  • Industry Position: 125.7% above the Retail - Cyclical median (#116 of 579)

No single metric tells the full story. See the BBY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Best Buy Co Business Description

Address 7601 Penn Avenue South, Richfield, MN, USA, 55423
Best Buy Co Inc is a pure-play consumer electronics retailer in the USA. It has two reportable segments: Domestic and International. The Domestic and International segments have offerings in six revenue categories. Computing and Mobile Phones, Consumer Electronics, Appliances, Entertainment, Services, and Other. The company has approximately 1,068 stores throughout its Domestic and International segments. It also have vendor store-within-a-store concepts to allow closer vendor partnerships and a higher quality customer experience. The company generates majority of its revenue from the Domestic segment.
75GF Score

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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$87.11
Price
$75.99
GF Value